S.B. No. 266 amends various sections of the Texas Tax Code to streamline tax and fee collection procedures and enhance the process for disputing managed audit results. Key changes include the requirement for taxpayers to produce "sufficient" records and documentation to substantiate their claims, replacing the previous term "contemporaneous." The bill also introduces a new provision allowing taxpayers to bypass the redetermination process by filing a notice of intent to dispute the results of a managed audit, provided they meet specific criteria. Additionally, it establishes that penalties for unpaid determinations can be abated if a timely suit is filed.

The bill further clarifies the procedures for suits related to tax refunds and disputes arising from managed audits, including the requirement for taxpayers to attach their notice of intent to their original petition. It also enjoins the comptroller and the attorney general from collecting disputed amounts during the pendency of the suit, while still allowing them to assert tax liens or require security for the disputed amounts. The act applies to ongoing managed audits and proceedings, ensuring that the new provisions are effective immediately upon passage or by September 1, 2025, if not passed with the necessary vote for immediate effect.

Statutes affected:
Introduced: Tax Code 111.0041, Tax Code 111.0081, Tax Code 112.052, Tax Code 112.151, Tax Code 112.152, Tax Code 112.201, Tax Code 112.202, Tax Code 111.105 (Tax Code 112, Tax Code 111)
Senate Committee Report: Tax Code 111.0041, Tax Code 111.0081, Tax Code 112.052, Tax Code 112.151, Tax Code 112.152, Tax Code 112.201, Tax Code 112.202, Tax Code 111.105 (Tax Code 112, Tax Code 111)
Engrossed: Tax Code 111.0041, Tax Code 111.0081, Tax Code 112.052, Tax Code 112.151, Tax Code 112.152, Tax Code 112.201, Tax Code 112.202, Tax Code 111.105 (Tax Code 112, Tax Code 111)
House Committee Report: Tax Code 111.0041, Tax Code 111.0081, Tax Code 112.052, Tax Code 112.151, Tax Code 112.152, Tax Code 112.201, Tax Code 112.202, Tax Code 111.105 (Tax Code 112, Tax Code 111)
Enrolled: Tax Code 111.0041, Tax Code 111.0081, Tax Code 112.052, Tax Code 112.151, Tax Code 112.152, Tax Code 112.201, Tax Code 112.202, Tax Code 111.105 (Tax Code 112, Tax Code 111)